A Study on the Interaction of Local Government Debt,Economic Growth and Financial Stability
The problem of local government debt in China is a reflection of the ongoing accumulation of economic structural contradictions and the intertwined impact of financial risks.Drawing on the finan-cial-economic cycle and financial instability theories,this study empirically examines the relationship between local government debt,economic growth,and financial stability.Findings indicate that while the expansion of local government debt may temporarily boost economic growth,it poses long-term risks to the macroeconomy.Excessive debt accumulation by local governments can lead to macroeconomic fluctu-ations,debt risks,asset bubbles,and increased leverage.These risks can permeate the financial system via bank credit and balance sheets,thereby affecting financial stability.
local government debteconomic growthfinancial stabilitydebt riskasset pricestlever-age
万方数据
维普
